To increase the dissolution rate of furosemide, chitin and chitosan which are widely occurring biodegradable natural materials were used as drug carriers. The ground mixtures of furosemide with chitin or chitosan were prepared by grinding in a ball mill. The ground mixture showed a faster and more enhanced dissolution rate than the physical mixture or intact furosemide. The crystalline peaks of furosemide disappeared in the ground mixtures indicating the production of amorphous form. The comparison of infrared spectra of the physical mixture and the ground mixture showed an interaction such as association between the functional groups of furosemide and chitin or chitosan in the molecular level. The weight losses in TGA curves showed all the same patterns. However, the endothermic peak due to the fusion of furosemide in DTA curve disappeared in the ground mixture indicating the different thermal property. The dissolution of furosemide from ground mixtures was fast in the order of chitosan and then chitin. The co-grinding technique with chitin or chitosan provided a promising way enhancing the dissolution rate of practically insoluble drug.